Investors' Soapbox PM

Two Offshore Drillers at Risk

FBR Capital downgraded Rowan and Diamond Offshore to Market Perform.

October 10, 2012

FBR Capital Markets

Over the next 12-month, two-year, and three-year periods, demand as a percentage of supply currently rests at a healthy 103%, 93% and 82%. This tightness has driven a notable uptick in deepwater-rig rates (and stocks) for the better half of 2012.

Based on our supply and demand model, we believe the risk of a decline in deepwater-rig day rates in 2013 is low. For the purposes of this report, fifth- and...